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Sterling steadies against dollar and euro

Published:  01 September, 2011

Sterling had a steady day on Wednesday and managed to strengthen slightly against both the euro and the US$.

Sterling had a steady day on Wednesday and managed to strengthen slightly against both the euro and the US$.

Currency rates - September 1

EURO/GBP - 1.1308
- 1.6228

CHF/GBP - 1.3104

CAN$/GBP - 1.5867
- 1.5168
- 11.3382
- 124.92
- 12.6368

NZD/GBP - 1.9092
- 10.3158
- 1.4330


Gains in U.K. bonds this year are as a result of investors seeking safety from Europe's turbulent debt crisis. UK economic data has disappointed in August which has made any increases in UK interest rates highly unlikely in what remains of 2011 and possibly 2012.


The euro suffered yesterday, especially against commodity currencies, after low demand for Italian government bonds undermined the euro zones efforts to get on top of its debt. Euro zone inflation remained unchanged at 2.5% in August from July, whilst July Euro zone unemployment stood still at 10%. The number of people unemployed rose for a third consecutive month. Austria's unemployment rate was the lowest, whilst Spain was the highest once again, increasing to 21.2%.


The US dollar received a brief boost against sterling and the euro after better than expected factory sector data. US factory orders rose by 2.4% in July compared to June - more than economists had forecasted. Additionally, US ADP employment showed an increase of 91, 000 private sector jobs. This data will definitely add expectation to the Federal Reserve's meeting this month as the Chairman of the Federal Reserve has indicated he may use fresh methods to boost the US recovery.


Elsewhere, high yielding currencies are beginning to look more appealing to investors as optimism increases for global growth. Canada's dollar rose against the US dollar yesterday after data indicated the nation's economy grew 0.2% from the previous month. The Swiss franc also made significant gains against the euro and the US dollar, with the US dollar dropping by 1.9% against the Swiss franc.

Smart Currency Exchange is a currency partner to Harpers Wine and Spirit. Harpers Wine and Spirit has teamed up with Smart to provide readers with a free bespoke currency service.